Annual Report 2005

The employment rate in the Company is dependent on the volume of orders obtained and production needs for the respective period. In 2005, as in years before, the Company carried out rationalization of the whole management structure and all systematized working positions within the scope of 2 – 5%. Therefore, higher production volumes were fulfilled with 3.2% fewer employees compared to the prior year. In 2005, the Company employed on average 3 966 employees (adjusted number), 126 less than the prior year. The average monthly salary in 2005 amounted to SKK 21 921 per employee, an increase of 9.6%. The average monthly salary in 2005 within working (blue collar) positions was SKK 18 250 per employee. Value added labour productivity amounted to SKK 694 402 per employee, i.e., a dramatic increase of 51.8% compared to 2004. In 2005, subsidiaries and associated companies in Slovakia employed an additional 556 employees. Subsidiaries in the Czech Republic employed 3 404 people in 2005. Women Men 2001 2002 2003 2004 2005 4092 100% 75% 50% 25% 0% 4122 4082 4043 3966 7% 37% 47% 9% 7% Primary education 37% Secondary professional 47% Secondary accomplished 9% University Number of employees (Average registered - recalculated) Breakdown of employees per education in 2005 REPORT BY THE BOARD OF DIRECTORS Report by the Board of Directors Annual Report 2005 Železiarne Podbrezová 18